Amplitude modulation [1] was the first ever technique that attempted to display a large number of gray shades. Hardware complexity of the data drivers is high for this technique because 2(G−1) voltages are necessary in the data waveforms to display G gray shades. Hardware complexity will be less if analog sample and hold type drivers are used instead of the digital drivers but the power consumption will be high. The pulse height modulation [2] for displaying gray shades is similar to the amplitude modulation and hence has the same merits and demerits as the amplitude modulation. The successive approximation techniques [3] can display a large number of gray shades with the simple drivers as that of bi-level displays (with pixels driven to either ON or OFF states). Hardware complexity of the modified voltage level generator and a few analog multiplexers that are necessary to achieve gray shades in a bi-level display is not significant as compared to the increase hardware complexity of the drivers if amplitude modulation or pulse height modulation is used for displaying a large number of gray shades. Reduction in the hardware complexity of the drivers has a high impact on the overall hardware complexity and the cost because the number of drivers is large (sum of the rows and columns in the matrix display). However, supply voltage of the driver circuit of the successive approximation technique increases with the number of gray shades. Wavelets can be used to display gray shades (for driving or matrix addressing) in liquid crystal displays (LCD) and it was demonstrated [4] recently. Wavelets can be used to reduce the supply voltage and hardware complexity of the drivers [5], [6] in RMS responding displays, especially when the number of gray shades is large. All these addressing techniques are based on selecting several address lines simultaneously while scanning the matrix displays. Our objective is to show that the simple line-by-line addressing can be used to display a large number of gray shades without much increase in the hardware complexity of the drivers and without much increase in supply voltage. A line-by-line addressing that is based on using wavelets is proposed in this paper. Effective utilization of wavelets is illustrated with an example: displaying 128 gray shades in a passive matrix LCD using the Haar wavelets. However, the wavelet matrices for 32 and 64 gray shades are also given in this paper.